Comments on: Appraisal Quality Determined by AVMs?

By: Mike Ford, CA AG; AGA, GAA, RAA

Mike Ford, CA AG; AGA, GAA, RAA — Tue, 19 Jan 2016 00:13:20 +0000

I would hope there is not, other than damage to his or her own reputation if they have done careless work. The Brokers job is NOT to measure market value as we define it. His job is to sell the property he lists for the highest possible net amount to the sellers within the time frame and conditions they all agree upon.

On those rare occasions when the BPO s actually performed by the broker for a lender with an REO, the lenders limit the benefits of a professional broker by telling them the conditions of sale rather than ASKING for professional advice.

MV and cash equivalence constraints are not, and should not be limitations to a BPO or CMA. It’s time to allow professionals in ALL disciplines go back to doing what they do best instead of holding all our work up to such microscopic second guessing that any benefits of our professional skills become lost.

By: Jack Schlenk

Jack Schlenk — Wed, 31 Dec 2014 17:19:41 +0000

Collateral Underwriter (CU) FAQs 12/01/2014
Q. 22 FAQs
New, Qs, 7, 9, 10, 20, 21, 22

Desktop Underwriter (DU) Spring 2015 Update 12/05/14

UCDP Fannie Mae Appraisal Messaging Change Notification
11/18/14

Jack Schlenk
has successfully completed the course:
Understanding the CU Risk Score, Flags and Messages
12/21/2014

I would recommend all Appraiser’s take the course.
FannieMae will give, if you pass, a Certificate of Completion

By: Jack Schlenk

Jack Schlenk — Fri, 03 Oct 2014 13:52:48 +0000

Now in Illinois Per Public Act 098-1109 a statement in substantially the following must be noted.
“This is a broker price opinion/comparative market analysis. NOT AN APPRAISAL OF THE MARKET VALUE OF THE REAL ESTATE . AND WAS PREPARED BY A LICENSED REAL ESTATE BROKER OR MANAGING BROKER. NOT BY A STATE CERTIFIED REAL STATE APPRAISER.”
Any and all broker price opinion/comparative market analysis must be in writing and a brief description of the methodology used to develop the broker price opinion or comparative market analysis.
Question; Is there any liability for the broker for a price opinion/comparative market analysis that was not supported by the methodology used?

By: Mike Ford, CA Gen. Cert.

Mike Ford, CA Gen. Cert. — Fri, 27 Jun 2014 14:22:03 +0000

My appraisal REPORTS include explanation of my adjustments as they are required to do. On rare occasions I may make a reference to my website for a complex technical explanation, but I never do so routinely. Certainly I would never routinely refer a user to a blog for explanations on generic ROTE adjustments, rather than how they were determined for a specific assignment.

I NEVER include AVM data. Why would I intentionally include potentially erroneous and misleading information that contradicts my own professional work?

Jack, times have changed since 1968. perhaps you should give some thought to that. The PRINCIPLE of substitution also has a proviso in it, when applied to the Cost Approach that “…assumes no undue delay would be entailed in building that substitute property.”

Try getting a mega mansion done in Malibu or anywhere in Los Angeles near the Santa Monica Mountains Conservancy areas. Coastal Commission alone can take 6 to 9 months IF there are no issues.

By: Baggins

Baggins — Tue, 04 Mar 2014 16:00:53 +0000

This is a very great article. Too bad more appraisers just don’t understand that the quickie products and quickie workup methods, mean an end to traditional appraisal as we know it. If price can always equal value, lenders won’t need an appraiser, and then could phase out realtors as well. The appraisal profession is under attack by unscrupulous interests who do not lend their own money, or shoulder their own risk. Now our local MLS has adopted a nationalized mls system which is avm heavy and all the salesmen are pointing to this uber aggressive automatic value model as some illusionary justification for pressing the price. Somehow it became the industry norm to have a one or two day turn time, as appraisers one by one, fell to the trap of automatic analysis process. This industry is so awful, I would not wish it on anyone else. Consumer beware, because with some avenues, you cannot get fair representation in this business. Now a days, most appraisers auto import everything, run analytics on it all, match that against existing avm data points, and point to the results as if they have done an appraisal. They turn the report in a day, and make us manual and considerate appraisers look bad. There is no future in this industry, because the ethical base is too far eroded. Attention to consumer and lender safety and loan viability is so way down the line, nobody even remembers that’s supposed to be the primary purpose of appraisal products. Efficiency this, profit that, and who honestly cares about the details anymore? Various forms of mortgage fraud are bigger then ever, don’t kid yourself about anything to do with appraisal quality; it’s generally absent.

By: Jack Schlenk

Jack Schlenk — Mon, 03 Mar 2014 17:36:46 +0000

In in all my Appraisal reports I note the AVM value (also the AVM range) the Assessor Values and the prior sale value of the subject and the comps.

All of my comps have a time adjustment up, down or none based on market data for the subject market.

My blog explains how I make said adjustments in my reports.

On my Desk the 1968 copy “RE Appraisal Desk Book” By Robert W Winstead, ” Market Value”= The law of substitution. No Property is worth more than it cost to substitute an acceptable property. The Appraiser’s hard job is finding an property that is a acceptable substitute. Most Comps required adjustments. How to support the adjustments. Review Jack Schlenk’s blog.

By: Donna Corrado on Facebook

Donna Corrado on Facebook — Mon, 03 Mar 2014 15:09:01 +0000

Why would I read an article who’s bankrupted appraisers because they weren’t paid by him. No credibility whatsoever